HCS HB 959 -- FINANCIAL SERVICES (Luetkemeyer)

This substitute makes changes to the laws regarding financial
services.

The substitute expands the College Tuition Savings Plan (also
known as a "529 Plan") by allowing Missouri residents to use any
qualified 529 Plan from any state or political subdivision.
Currently, Missouri residents can use only the state-sponsored
plan, known as the Missouri Higher Education Savings Program.
The substitute also establishes an additional savings plan, to be
known as the Missouri Higher Education Deposit Program, which
allows any bank in Missouri to establish savings accounts as part
of a 529 Plan.  State employees may request automatic payroll
deductions for deposit into these accounts.  The substitute
requires the deposit program to be administered in the same
fashion as the current savings program.  The provisions governing
this program will expire six years from the effective date of the
substitute.

The substitute creates a cause of action for the deceptive use of
the name of another financial institution.  Any financial
institution may sue any person or entity that creates a
misleading advertisement or solicitation by including the name of
the financial institution without consent.  A plaintiff
prevailing in this type of action will be entitled to $10,000 in
statutory damages, plus any proven actual damages; attorney fees;
and court costs.

The substitute makes several changes to the law governing how and
when a lender must provide a deed of release when a borrower has
paid off a mortgage.  Current law requires the lender to issue a
release to the borrower within 15 business days.  The substitute
lengthens this time frame to 45 calendar days.  The substitute
also allows the lender to have the document recorded, rather than
sending it to the borrower.  If the document cannot be recorded
for any reason, the lender will have an additional 60 days to
file a document that can be recorded.  Finally, the substitute
limits the damages that may be awarded for noncompliance to $300
per day or 10% of the amount of the loan, whichever is less.

The substitute makes changes to the laws regarding small loans.
The substitute:

(1)  Increases from $6 to $15 the maximum amount which may be
charged as an expediter fee.  The expediter fee is money
collected by a third party to expedite the retrieval of a
debtor's motor vehicle title from the Department of Revenue;

(2)  Repeals a provision allowing a $10 charge as a late payment
fee; and

(3)  Allows lenders to collect a fee in advance for allowing the
debtor to defer monthly loan payments on loans of $600 or more.
The fee may be between $25 to $50, but not more than 10% of the
loan payments deferred.  This provision does not apply to
pre-computed loans.

Finally, the substitute expands the crime of false impersonation
to include the providing of a false identity to a law enforcement
officer upon arrest.  If the false identity is not discovered
until after the person is convicted, the prosecutor must file a
motion to correct the arrest records and court records.  The
substitute also allows the court to order the expungement of the
false arrest records for the person whose identity was used.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $57,738
to Unknown in FY 2005, $54,785 to Unknown in FY 2006, and $56,154
to Unknown in FY 2007.  No impact on Other State Funds in FY
2005, FY 2006, and FY 2007.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:14 am